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is it right calculation by me?

Kumar Gaurav (Going...to be C.A soon...) (1624 Points)

27 November 2010

Dear All

We have received some "Information technology software services" from a private company based in india for Rs. 249934/- against various bills during F.Y 10-11.

Calculations are as follows according to me:

Service Provider----Company & service recepient----Firm

TDS rate u/s 194J---for professional & technical services----- @ 10% (suecharge & education cess are not applicable)

TDS amount would be Rs. 24,993/-

M i right in above situation or not...........please let me know

Thanks in advance!

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13 Replies

CA. Rajesh P. Ahir (In Service @ PSU) (687 Points)
Replied 27 November 2010

DEAR GAURAV

I THINK YOU ARE CORRECT. THERE IS NO Edc. Cess OR HI. Edu. Cess. U/S 194J.

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Kumar Gaurav (Going...to be C.A soon...) (1624 Points)
Replied 27 November 2010

one more thing in addition to the above, info. tech. software srvices is for " Oracle database, Antivirus CD , for server cd & MS-office etc" purchased for official use.

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 27 November 2010

Hi.., i think education cess and higher education cess is applicable in dedcuting TDS....

Kumar Gaurav (Going...to be C.A soon...) (1624 Points)
Replied 27 November 2010

Dear Mr. Dhiraj

I think it has been withdraw w.e.f 01.04.2009 on any payments made to residents.

correct me if m wrong -plz

P A N K A J (CA FINAL) (740 Points)
Replied 27 November 2010

Bro u r right.

Education cess is not applicable on TDS w.e.f 01-10-2009....

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Prasad R (CA Final) (2128 Points)
Replied 27 November 2010

Yes i agree with the above comments education cess and surcharge are not applicable in deduction of TDS except TDS on salary.

Best Wishes

Prasad R

Kumar Gaurav (Going...to be C.A soon...) (1624 Points)
Replied 27 November 2010

describe the term " technical services"

does it includes, Oracle services & CD, Antivirus Cd, MS-office cd & server Cd purchased for official use?

where service tax & CST is charges on the invoice on the above mentioned items.

Santhosh Poojary (SIEMPRE AHÍ PARA TI) (15607 Points)
Replied 27 November 2010

While Deduction of TDS, Education Cess & Surcharge are Not Applicable

Except in case of Salary.

Regards:

(Guest)

ya ur calculation is correct because e.c. and s.h.e.c. is not included for calculation of T.D.S

Ranotosh Podder (ca student) (394 Points)
Replied 27 November 2010

I think oracle cd, anti-virus cd, ms office cd etc are not includible in technical services.These are softwares useful for more than one year and can be shown as assets .If you have separate invoices for these softwares then sec 194j would not apply.

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prashant goyal (CA-Final) (100 Points)
Replied 29 November 2010

TDS would be deducted only on bills raised for "Technical Services: 194J is not applicable on Technical softwares purchased from a vendor in terms of "Contract for Sales". TDS would be deducted without education cess and surcharge if bills are raised after 1.10.2009 otherwise with education cess and surcharge